Connect with us

Hi, what are you looking for?

Business

Stanbic IBTC Bank Nigeria PMI® – Business conditions continue to improve in October

Stanbic IBTC Bank Nigeria PMI® - Business conditions continue to improve in October
Stanbic IBTC Bank Nigeria PMI® - Business conditions continue to improve in October

Output and new orders continue to expand, albeit at softer rates Purchasing activity increases at sharp and accelerated pace Inflationary pressures cool, but remain historically strong.

The start of the fourth quarter revealed a solid improvement in the health of Nigeria’s private sector. Output and new orders rose sharply while purchasing activity increased at an accelerated pace.

At the same time, backlogs increased for the second month in a row, with sustained accumulation of outstanding business suggesting that hiring activity could continue in the months ahead.

On the price front, price pressures showed further signs of abating with the overall rate of input cost inflation the weakest for three months, but still marked by historical standards. Selling prices were also raised, albeit at a softer rate than that seen in September.

The headline figure derived from the survey is the Purchasing Managers’ Index™ (PMI®). Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration.

The headline PMI posted at 53.6 in October, little-changed from 53.7 in September, indicating a solid improvement in the health of the private sector.

A key driver of growth was a sharp rise in new orders following reports of favourable and improving market conditions.

In turn, firms raised their output levels and for the fourth month in a row. Moreover, the rate of increase was quicker than the long-run series average. Manufacturing firms registered the strongest increase in output, followed by services, wholesale & retail and finally agriculture.

Backlogs increased for the second month in a row during October, but the rate of increase eased from that in September. Firms subsequently continued hiring activity, but the rate of growth was mild, and the joint-weakest in the current 21-month sequence of job creation.

Sustained expansions in new orders led Nigerian private sector firms to raise their purchasing activity, with the rate of growth quickening on the month. Pre-production inventories also rose robustly, with the rate of growth quickening to a three-month high amid firms’ efforts to boost their stockpiles.

Supply-chain performance improved, with lead times now shortening in each month for the last five years.

Meanwhile, prices data revealed another month of overall input price inflation. Higher purchase and staff costs underpinned the latest rise which eased from September, but was sharp and historically elevated, nevertheless.

Selling prices also rose, but at the weakest pace for almost two years.

Whilst firms maintained an optimistic view towards output in the next 12 months, the degree of positivity was the second lowest in the series history, with that only recorded in September 2020 weaker.

You May Also Like

News

UK Nurses To Commence Strike The RCN announced that on these two days, its members will stage the first national strikes in its 106-year...

News

Cristiano Ronaldo declares his chapter with Manchester United closed Cristiano Ronaldo says his connection with Manchester United is now complete. The 37-year-old made history...

Press Release

AKMODEL Homes and Properties is celebrating its second year anniversary today. This will take place on November 27th, 2022 at 1:00pm in Blue Moon...

Lifestyle

Congratulatory messages are in order again as the Badagry-born, multiple-award-winning damsel Bodex F. Hungbo, SPMIIM, bags the Prime Excellence New Media Personality of the...